Memphis FSBO Resource Center

Pricing your home correctly is one of the most important decisions you'll make when selling it yourself.

Price too low and you may leave money on the table. Price too high and you risk sitting on the market while buyers move on to other homes.

The goal isn't simply to pick the highest price you think someone might pay.

It's to determine what your home is most likely worth in today's market.

One of the best ways to estimate your home's market value is to look at similar homes that have recently sold nearby.

Good comparable sales generally have similarities such as:

• Location and neighborhood
• Square footage
• Age and style
• Bedroom and bathroom count
• Lot size
• Garage or carport
• Overall condition and updates
• Amenities such as a pool

The closer the comparable property is to your home in location, features, condition, and timing, the more useful it may be.

Price per square foot can be helpful, but it doesn't tell the entire story.

Two homes with similar square footage can sell for very different prices because of condition, renovations, lot, floor plan, location within the neighborhood, garage space, pools, and other features.

Use price per square foot as one piece of the puzzle, not the entire pricing strategy.

Online estimates from real estate websites can be a useful starting point, but they're generated from available data and may not know the things that make your home different.

An algorithm may not know that you completely renovated your kitchen, that the house across the street backs up to something undesirable, or that one comparable needed $75,000 worth of updating.

Look at online estimates, but don't let one number determine your asking price.

Recent sales tell you what buyers have paid.

Active listings show you what buyers can choose right now.

If several similar homes are available in your area, buyers are going to compare your home with those properties.

Ask yourself:

If I were the buyer looking at these homes today, how would mine compare?

Once your home is for sale, buyer activity becomes another source of information.

If you're getting plenty of showings but no offers, buyers may be telling you something about the price, condition, or presentation.

If you're getting very little interest at all, your price or marketing may need another look.

Don't automatically reduce the price after a few quiet days, but don't ignore consistent feedback from the market either.

If you're selling your home yourself and would like another set of eyes on the numbers, I'm happy to help.

I can pull recent comparable sales from the local MLS and give you my opinion of the property's likely market value.

No listing appointment required. No obligation. Just another piece of information you can use when deciding how to price your home.

You don't need to completely remodel your home before putting it on the market.

The goal is simpler: make it clean, well-maintained, and easy for buyers to picture themselves living there.

A few thoughtful improvements can make a much bigger difference than an expensive renovation.

Buyers begin forming an opinion before they ever walk through the front door.

Take a look at your home from the street as if you've never seen it before.

Consider:

• Mowing and edging the lawn
• Trimming overgrown landscaping
• Removing leaves and debris
• Pressure washing when needed
• Cleaning the front porch and entry
• Touching up peeling or damaged exterior paint
• Making sure exterior lights work
• Giving the front door a clean, welcoming appearance

You don't need elaborate landscaping. Clean and maintained goes a long way.

You're not trying to make the house look empty.

You're trying to make the home itself easier to see.

Clear crowded countertops, remove excess furniture, organize closets, and pack away some personal items.

Buyers will open closets and cabinets. A packed storage area can unintentionally make the home feel like it doesn't have enough space.

A clean home simply shows better.

Pay particular attention to kitchens, bathrooms, floors, windows, baseboards, appliances, ceiling fans, and areas that may not receive attention during normal weekly cleaning.

And don't forget about odors.

Pet smells, cigarette smoke, heavy fragrances, and other odors can make an immediate impression on a buyer.

You've probably learned to live with the loose doorknob, dripping faucet, burned-out bulb, sticking door, or missing switch plate.

A buyer hasn't.

Individually, those things may be minor. But several small maintenance issues can create the impression that the home hasn't been well cared for.

Walk through the house with fresh eyes and take care of the simple repairs you've been meaning to get around to.

Before a showing, open blinds and curtains and turn on the lights.

Bright rooms generally feel larger and more inviting.

Make sure light fixtures have working bulbs and consider replacing bulbs that create noticeably different colors or brightness within the same room.

Be careful about making major improvements solely because you're preparing to sell.

A new kitchen, bathroom renovation, or expensive flooring project doesn't automatically mean you'll recover every dollar you spend.

Before investing significant money into the house, consider whether the improvement is actually necessary to sell and whether buyers in your market are likely to pay enough more to justify it.

Sometimes the better decision is simply to price the home appropriately for its current condition.

Before taking your listing photos, walk through the home one more time as if you're the buyer.

Look at the countertops. Open the closets. Walk through the backyard. Stand at the front door.

Ask yourself:

“If I were seeing this house for the first time, what would stand out to me?”

Fix what you reasonably can, clean what needs cleaning, and then get ready to show buyers what your home has to offer.

Once your home is prepared and priced, the next step is getting it in front of potential buyers.

Good marketing doesn't sell the house by itself, but it can determine whether a buyer ever decides to see it.

For many buyers, their first showing happens on a phone.

They'll scroll through the photos before deciding whether the home deserves a closer look.

Before taking pictures:

• Clean and declutter each room
• Open blinds and curtains
• Turn on the lights
• Make beds and clear countertops
• Put away pet items, trash cans, toiletries, and excess personal items
• Straighten outdoor furniture and clean up the yard
• Remove vehicles from the driveway when possible

Take clear, bright photos that accurately represent the home.

Avoid excessive filters or editing that makes the property look dramatically different from what buyers will see in person.

You don't need a photograph of every corner of every room.

Focus on the spaces and features buyers are most likely to care about: the kitchen, living areas, primary bedroom and bathroom, additional bedrooms, outdoor space, garage, and any special features of the property.

Arrange the photos in an order that gives buyers a natural sense of walking through the home.

A good description should help buyers understand what makes the property worth seeing.

Highlight meaningful features such as:

• Renovations and updates
• Floor plan and living spaces
• Bedroom and bathroom count
• Garage and storage
• Outdoor living areas
• Lot size
• Recent major improvements
• Features that distinguish the home from nearby competition

Be accurate. Don't exaggerate features or make claims you can't support.

Think about where buyers in your market are actually searching.

Depending on how you choose to market the property, that could include real estate websites, FSBO websites, social media, neighborhood groups, yard signs, word of mouth, and other online marketplaces.

The more qualified buyers who know the home is available, the better opportunity you have to generate interest.

This sounds simple, but it matters.

If a buyer finds your home and wants to see it, make the next step obvious.

Provide a reliable way for buyers and agents to contact you, respond promptly to showing requests, and have a system for keeping track of appointments.

A buyer looking at several homes may simply move on if scheduling yours becomes difficult.

Some buyers who find your FSBO will already be working with a real estate agent.

Decide in advance how you plan to handle those inquiries rather than figuring it out when an agent calls asking to show the home.

Ask who the agent represents, understand what they're requesting, and make sure any agreement involving compensation or representation is clearly documented.

We'll talk more about working with buyer's agents later in this guide.

Thousands of online views don't necessarily mean your marketing is working.

The better questions are:

Are buyers contacting you?

Are they scheduling showings?

Are the people seeing the home actually qualified and interested?

And ultimately:

Are you receiving offers?

Those are the results that matter.

When you're selling your home yourself, you're also responsible for managing showing requests and deciding who enters your property.

Most people who contact you will simply be buyers interested in the home, but it's still smart to take some basic precautions.

Before scheduling a showing, get the visitor's:

• Full name
• Phone number
• Email address
• Name of their real estate agent, if they're working with one

If a buyer is represented by an agent, communicating and scheduling through that agent can provide an additional layer of accountability.

For an unrepresented buyer, consider asking whether they've been preapproved for a mortgage or can provide proof of funds if they're purchasing with cash.

Whenever possible, have another adult present during showings.

Let someone know when you're having a showing, who is expected, and when it is scheduled to end.

Avoid discussing your personal schedule, when the home is normally empty, or other unnecessary details with prospective buyers.

Before opening your home to buyers, put away anything you wouldn't want a stranger to access.

That includes:

• Jewelry and cash
• Prescription medications
• Firearms
• Financial documents
• Checkbooks and credit cards
• Mail containing personal information
• Passports and identification documents
• Small electronics and other valuables

Don't simply put these items in a drawer. Secure them somewhere buyers cannot easily access.

Family calendars, school schedules, children's names, work information, alarm codes, Wi-Fi passwords, and other personal information can sometimes be visible around the house without you realizing it.

Take a quick look around before showings and remove anything that reveals more about your family or routine than a buyer needs to know.

Maintain a simple record of:

• Who viewed the home
• Their contact information
• Date and time of the showing
• Whether they were represented by an agent
• Any follow-up or feedback

Besides helping with safety, this gives you an organized way to follow up with interested buyers.

Buyers generally want enough privacy to talk and look around without the homeowner standing over their shoulder.

But that doesn't mean you need to let strangers roam through your home completely unattended.

Give them room to experience the property while remaining aware of where they are and what's happening.

Don't wait until someone texts, “Can I come see it in 20 minutes?” to decide how you're going to handle showings.

Determine your process ahead of time.

Know what information you'll collect, how you'll schedule appointments, where you'll secure valuables, who will be present, and how you'll keep track of visitors.

A little preparation can make showing your home safer, easier, and much less stressful.

Getting an offer is exciting, but don't look at the purchase price and stop there.

A real estate offer contains multiple terms that can affect how much money you ultimately receive, how likely the transaction is to close, and what responsibilities you'll have along the way.

The highest-priced offer isn't always the best offer.

Start with the obvious: how much is the buyer offering?

Compare the offer with your asking price, recent comparable sales, and what you believe the home is worth.

But then keep reading.

Look at whether the buyer is using:

• Conventional financing
• FHA financing
• VA financing
• USDA financing
• Cash
• Another financing arrangement

If the buyer is financing the purchase, ask for a current preapproval letter from a reputable lender.

For a cash offer, ask for reasonable proof that the buyer has the funds available to complete the purchase.

A buyer may ask you to contribute toward some of their closing costs or other allowable expenses.

That directly affects your bottom line.

For example, a $400,000 offer asking you to pay $12,000 toward the buyer's costs is financially different from a $395,000 offer with no seller contribution.

Don't compare offers based on purchase price alone. Look at your estimated net proceeds.

Earnest money is money the buyer deposits after the contract is accepted to demonstrate their commitment to the transaction.

Pay attention to:

• The amount of earnest money
• When it must be deposited
• Who will hold it
• The circumstances under which it may be returned to the buyer or become available to the seller

Earnest money isn't automatically yours simply because a buyer later decides not to close. The contract controls what happens to those funds.

Most offers contain conditions that allow the buyer certain rights before closing.

Depending on the contract, these may involve:

• Financing
• Appraisal
• Inspections
• Sale of another property
• Title
• Other negotiated conditions

Read every contingency carefully and understand what rights it gives the buyer and what obligations it creates for you.

Pay close attention to the buyer's inspection and due-diligence rights.

How long does the buyer have to inspect the property?

What happens after the inspection?

Can they request repairs, ask for a credit, renegotiate, or terminate under the terms of the agreement?

Don't wait until an inspection report arrives to understand what you agreed to.

If the buyer is financing the purchase, an appraisal may be required by the lender.

Understand what the contract says if the property appraises for less than the agreed purchase price.

Depending on the terms, a low appraisal could lead to additional negotiations or give the buyer certain options.

Price isn't the only term that has value.

A closing date that works well with your moving plans may be important, particularly if you're also purchasing another home.

Also make sure the contract clearly states when the buyer will take possession of the property.

Closing and possession aren't necessarily the same thing.

You generally don't have to accept an offer exactly as it was presented.

Depending on the situation and the terms of the offer, you may decide to accept it, reject it, or make a counteroffer.

You might agree with the price but want a different closing date. You may accept the buyer's price but decline some of the requested closing costs. Or several terms may need to change.

Negotiation is about looking at the entire offer, not just one number.

A purchase agreement is a legally binding contract.

Before signing, make sure you understand the price, deadlines, contingencies, costs, obligations, and what happens if either party doesn't perform as agreed.

If you're unsure about the legal meaning or consequences of any provision, consider having a qualified real estate attorney review the agreement before you sign it.

A good offer isn't necessarily the one with the biggest number at the top. It's the offer with the combination of price, terms, costs, and likelihood of closing that works best for you.

Selling your home yourself doesn't mean every buyer who comes through the door will be unrepresented.

Many buyers are already working with a real estate agent, and that agent may contact you directly to schedule a showing or submit an offer on the buyer's behalf.

That's completely normal.

This is the most important thing to understand:

The buyer's agent represents the buyer — not you.

Their job is to advise their client, help them evaluate your home, prepare and negotiate an offer, coordinate inspections and financing, and protect the buyer's interests throughout the transaction.

You can absolutely communicate and work with the buyer's agent, but don't assume they're also advising you.

Not automatically.

Real estate commissions and broker compensation are negotiable. There is no standard or legally required commission that a FSBO seller must pay a buyer's agent.

However, a buyer who is working with an agent may have a written agreement establishing how that agent will be compensated.

The buyer or their agent may ask you to contribute toward that compensation as part of the transaction.

You can agree, decline, or negotiate the request just like other financial terms of an offer.

Try not to evaluate buyer-agent compensation in isolation.

Look at what the buyer is offering you as a whole.

For example, an offer that includes a request for buyer-agent compensation may still provide you with a better net result than another offer with a lower purchase price.

The question isn't simply:

“Am I paying a buyer's agent?”

The better question is:

“What will I net from this offer, and do the overall price and terms make sense for me?”

If you agree to pay or contribute toward a buyer's agent's compensation, make sure the amount, terms, and method of payment are clearly documented in writing.

Don't rely on a handshake, text-message assumption, or “this is how it's normally done.”

Broker compensation is negotiable, and you should understand exactly what you've agreed to before signing anything.

Having an experienced agent on the buyer's side can help keep many parts of the transaction organized, but it doesn't change the fact that you are still representing yourself as the seller.

The buyer's agent may prepare documents, communicate with the lender, coordinate inspections, and help move the transaction toward closing — but they're doing those things on behalf of their client.

If you need legal advice about the contract or your obligations as the seller, consider consulting a qualified real estate attorney.

A buyer having an agent isn't necessarily a negative for a FSBO seller.

It simply means you need to understand the relationship.

Know who the agent represents, understand any compensation being requested, evaluate the entire offer based on your net proceeds and terms, and get any agreements in writing.

You don't have to avoid buyers with agents. You just need to understand who represents whom and what you're agreeing to.

Selling your home yourself doesn't eliminate the paperwork that comes with a real estate transaction.

From property disclosures and purchase agreements to inspections, financing documents, title work, and closing paperwork, it's important to understand what you're signing and when documents need to be provided.

Tennessee law generally requires sellers of covered residential property to provide buyers with information about the condition of the property and known material defects.

Depending on the transaction, this may involve a Tennessee Residential Property Condition Disclosure or another applicable disclosure, disclaimer, or exemption.

Certain property transfers are exempt from the standard disclosure requirements, so don't assume that the same form applies to every sale.

A property disclosure isn't a home inspection, and Tennessee law doesn't require you to hire an inspector just so you can complete the disclosure.

The important thing is to answer the required questions honestly and in good faith based on what you actually know about the property.

Don't intentionally hide a known material problem because you're worried it could affect the sale.

If you're unsure whether something needs to be disclosed, that's a good time to seek professional legal guidance rather than guess.

If your home was built before 1978, federal lead-based-paint disclosure requirements may also apply.

For most covered pre-1978 homes, sellers must disclose known information about lead-based paint or lead-based paint hazards and provide buyers with available related records or reports and the federally required lead-hazard information.

Buyers must also generally be given an opportunity to conduct a lead-based-paint inspection or risk assessment before becoming obligated to purchase the property.

Once you accept an offer, the purchase agreement becomes the roadmap for the transaction.

It can establish important rights, responsibilities, and deadlines involving things such as:

• Earnest money
• Financing
• Inspections
• Repairs
• Appraisal
• Title
• Closing costs
• Closing date
• Possession
• What happens if one party doesn't perform

Don't sign a contract simply because it looks like a “standard form.”

Make sure you understand what you've agreed to.

Maintain copies of your disclosures, contracts, amendments, inspection-related agreements, receipts for negotiated repairs, communications, and other important transaction documents.

Real estate transactions can involve a surprising amount of paperwork, and keeping an organized file from the beginning can make the process much easier.

As a FSBO seller, you're representing yourself in a transaction involving a legally binding contract and the transfer of real property.

There may be times when you need legal advice.

If you don't understand a provision of a contract, aren't sure about your disclosure obligations, encounter a title issue, or have a disagreement with the buyer over contractual rights, consider consulting a qualified Tennessee real estate attorney.

Saving money by selling your home yourself doesn't mean you have to navigate every legal question by yourself.

Getting under contract doesn't necessarily mean the negotiations are over.

If your purchase agreement gives the buyer an inspection or due-diligence period, the buyer may hire one or more professionals to evaluate the property before moving forward with the purchase.

A professional home inspector will generally evaluate the visible and accessible components and systems of the home.

Depending on the property and inspection, that may include:

• Roof and exterior
• Foundation and structural components
• Electrical system
• Plumbing
• Heating and cooling systems
• Attic and insulation
• Windows and doors
• Appliances
• Interior components
• Signs of moisture or other concerns

Additional specialized inspections may also be performed for things such as termites, sewer lines, pools, chimneys, or other property-specific concerns.

This is important.

Home inspectors identify conditions they observe. Their report may contain everything from significant defects to relatively minor maintenance items.

That doesn't automatically mean you're required to repair every item in the report.

What the buyer can request — and what options each party has afterward — depends on the terms of your purchase agreement.

After reviewing the inspection results, a buyer may ask you to:

• Make specific repairs
• Have repairs performed by qualified professionals
• Provide a credit or other financial concession when permitted
• Reduce the purchase price
• Renegotiate another term of the agreement

Depending on the contract, the buyer may also have the right to accept the property as-is or terminate within an applicable inspection period.

When you receive a repair request, look at the entire situation.

How serious is the issue?

What might it reasonably cost to correct?

Is it something another buyer is likely to discover too?

Could it affect the buyer's financing or appraisal?

How strong is the current offer?

What happens if this buyer walks away and you put the home back on the market?

Sometimes making a reasonable repair is the easiest path to closing. Other times, negotiating a different solution may make more sense.

Not every item identified by a home inspector is required by the buyer's lender.

However, certain loan programs may have property-condition requirements that must be satisfied before financing can be completed.

This can be particularly relevant with FHA and VA financing.

If a lender or appraiser identifies a condition that must be corrected for the loan to proceed, that becomes a different issue from an ordinary inspection request.

If you and the buyer agree to repairs, credits, price changes, or other modifications to the original agreement, make sure those changes are properly documented in writing.

Be specific about what is being agreed to, who is responsible, and when any required work must be completed.

Keep receipts and documentation for repairs when appropriate.

Inspection negotiations can sometimes become emotional.

You may disagree with an inspector's opinion. A buyer may ask for something you think is unreasonable. And after weeks of preparing, marketing, and showing your home, another round of negotiations can be frustrating.

Try to bring the decision back to the bigger question:

Does the solution make financial sense if the goal is to get this home successfully to closing?

You don't have to agree to every request.

But you also don't want a relatively small issue to derail an otherwise good transaction simply because the negotiation became personal.

If your buyer is using a mortgage to purchase your home, their financing will play an important role in getting the transaction to closing.

An accepted offer doesn't guarantee that the buyer's loan will ultimately be approved.

Before accepting a financed offer, ask for a current preapproval letter.

Once you're under contract, the buyer's lender will work through the mortgage process, which may include verifying the buyer's finances, reviewing the property, ordering an appraisal, and completing underwriting.

You won't have access to the buyer's private financial information, but you should have a clear way to receive appropriate updates about the progress of the loan.

Most financed purchases require an appraisal.

The appraiser provides an independent opinion of the property's value for the lender. 

Depending on the buyer's loan program, the appraisal may also address certain property-condition requirements.

An appraisal is not the same thing as a home inspection.

If the appraised value comes in below the agreed purchase price, don't panic — but don't ignore it either.

What happens next depends on the purchase agreement, the buyer's financing, and what you and the buyer are willing and able to do.

Possible outcomes may include:

• The buyer bringing additional cash to closing
• You and the buyer renegotiating the purchase price
• Meeting somewhere between the contract price and appraised value
• Challenging the appraisal through the lender when there is legitimate supporting market data
• The transaction terminating if the contract gives the buyer that right and an agreement can't be reached

Conventional, FHA, VA, and USDA financing don't all have identical requirements.

Some government-backed loan programs have additional appraisal or property-condition requirements that could affect the transaction.

That's one reason it's important to understand how the buyer intends to finance the purchase before accepting the offer, rather than looking only at the price.

Even with a preapproved buyer, completed inspection, and satisfactory appraisal, the transaction isn't finished until it closes.

Buyer financing can occasionally change because of employment, credit, debt, documentation, or other underwriting issues.

Keep communicating, meet your contractual obligations and deadlines, and continue treating the sale as an active transaction until the closing is complete.

Under contract is a major milestone. Closing is the finish line.

Once you're through inspections, appraisal, and the major negotiations, the focus shifts toward getting everything ready for closing.

There's still work happening behind the scenes, so stay organized and responsive until the transaction is officially complete.

The closing or title company will begin preparing for the transfer of ownership.

This process may include researching the property's title, identifying existing mortgages or liens that need to be paid, preparing closing documents, coordinating with the buyer's lender, and calculating the funds required to complete the transaction.

Provide requested information and documents promptly so avoidable delays don't hold up the closing.

If you agreed to make repairs as part of the inspection negotiations, make sure they're completed within the required timeframe.

Keep invoices, receipts, warranties, and other documentation associated with the work.

Don't wait until the day before closing to start working through a repair list.

Shortly before closing, the buyer will typically have an opportunity to conduct a final walk-through of the property.

This isn't another home inspection.

The purpose is generally to confirm that the property is in the expected condition, agreed-upon repairs have been completed, and nothing significant has changed since the buyer last saw the home.

Unless you've agreed otherwise, the home should be emptied of your belongings and left in the condition required by your contract.

Keep necessary utilities on through the time required by your agreement and closing arrangements.

The buyer may need electricity, water, and gas available for the final walk-through or other last-minute requirements.

Coordinate the timing of utility transfers rather than simply shutting everything off when you move out.

Before closing, you'll receive documents showing the financial details of the transaction.

Review the numbers carefully.

Make sure you understand the purchase price, mortgage or lien payoffs, taxes, closing expenses, credits, commissions or broker compensation you've agreed to pay, and your expected proceeds.

If something doesn't look right, ask about it before you're sitting at the closing table.

At closing, you'll sign the documents necessary to transfer ownership and complete the sale.

Once all requirements have been satisfied and the transaction has officially closed, the closing professional will handle the transfer of funds and applicable payoff amounts.

Your proceeds will be delivered according to the closing company's procedures.

Make sure the purchase agreement clearly establishes when the buyer takes possession.

Depending on your agreement, that may be at closing or at another specifically negotiated time.

Have all keys, garage-door openers, gate remotes, alarm information, and other agreed property items ready for the buyer.

Real estate transactions can involve large wire transfers, which makes buyers and sellers attractive targets for wire fraud.

Be extremely cautious with emailed wiring instructions or unexpected requests to change where funds should be sent.

Never rely solely on an email telling you that wiring instructions have changed.

Verify financial instructions directly with the closing company using a trusted phone number you independently know to be correct.

Selling a home yourself requires a lot of moving pieces.

If you've made it from preparing and pricing the property through marketing, showings, negotiations, inspections, appraisal, and finally closing, you've successfully navigated a major financial transaction.

Congratulations — you sold your home.

Selling your home yourself doesn't mean you have to figure out every part of the process alone.

I've been a Realtor in the Memphis area since 2014, and I'm happy to be a resource while you're selling your home — even if you have no intention of listing it with me.

Maybe you want another opinion on your asking price.

Maybe you've received an offer and aren't sure what you should be paying attention to.

Maybe a buyer's agent contacted you and you have questions about how that works.

Maybe you're dealing with an inspection, a low appraisal, or something else you simply haven't encountered before.

Or maybe you just want to call someone who deals with real estate every day and ask:

“Does this sound right to you?”

You're welcome to call, text, or email me.

I'm not going to turn every question into a pitch for your listing.

If I can answer your question, pull some comparable sales, point you toward the right professional, or simply give you another perspective, I'm happy to help.

My goal with this Resource Center is simple: give Memphis-area homeowners useful information and help when I can.

And if you successfully sell your home yourself, I'll be genuinely happy for you.

If at some point you decide you'd rather have a Realtor handle the process, I'd be happy to talk about that too.

Until then, I'm rooting for you.

Have a FSBO Question? Contact Bryan